The Goods and Services Tax (GST), implemented on July 1, 2017, replaced a range of central and state
taxes, such as Service Tax, Excise Duty, CST, Entertainment Tax, Luxury Tax, and VAT. This reform
streamlined the tax system in India. GST registration is compulsory for traders, service providers,
manufacturers, and freelancers.
Businesses with an annual turnover up to INR 1.5 Crore can benefit from a composition scheme, which
simplifies the GST process by allowing tax payments at a fixed rate based on their turnover.
GST integrates various indirect taxes—VAT, service tax, and excise duty—into a single tax system. This
unification has improved compliance, reduced tax evasion, eliminated cascading taxes, facilitated
business operations, and enhanced the overall efficiency of the economy.
What is a GST Registration Certificate?
A GST Registration Certificate is an official document issued by the Government of India to businesses
registered under the Goods and Services Tax (GST) system. This certificate confirms a business's legal
status and its registration under GST.
The certificate includes essential details such as the GST identification number, the business name, and
the official business address.
The GST Registration Certificate serves several important functions:
- Tax Collection Authority: It authorizes businesses to charge and collect GST from
their customers.
- Tax Credit Claims: It enables businesses to claim credits for GST paid on their
purchases and operational expenses.
In addition to its tax-related benefits, the GST Certificate also provides:
- Loan Applications: Businesses with a GST certificate find it easier to obtain loans
from financial institutions, as it proves their legitimacy.
- Government Tenders: Businesses with this certificate can participate in government
tenders, demonstrating compliance with tax regulations.
- Goodwill: Holding a GST Certificate enhances a business's reputation and builds
trust with consumers by showing adherence to national tax laws.
Overall, the GST Registration Certificate is crucial for fulfilling tax obligations and establishing
a business's credibility and operational legitimacy. Verifying GST registration is essential for any
business.
What is GSTIN?
The Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit alphanumeric code assigned
to every taxpayer registered under the GST system in India. This number serves as the primary identifier
for individuals and businesses in all GST-related transactions and regulatory compliance.
Once an applicant completes the GST registration process, they receive their GSTIN, which is essential
for smooth business operations and fulfilling tax obligations.
Benefits of GST Registration
GST registration provides numerous advantages for individuals and businesses, including:
- Regulatory Compliance: Ensures adherence to legal and tax obligations, protecting
businesses from penalties for non-compliance.
- Tax Credit Entitlement: Allows businesses to claim credits on GST paid on
purchases, which can be offset against GST collected on sales. This reduces overall tax
liability and improves cash flow.
- Facilitation of Inter-State Trade: Enables businesses to operate across state
borders without facing complex taxation issues, ensuring smooth operations.
- Elimination of Tax-on-Tax: The GST system removes the problem of paying tax on
previously taxed amounts, reducing the overall cost of goods and services for consumers.
- Market Advantage: Businesses with GST registration gain customer trust, leading to
increased business opportunities.
- Market Expansion: Helps businesses forge partnerships with larger players,
facilitating market expansion.
- Streamlined Cash Management: Effective GST management aids in reducing tax
liabilities and managing cash flow more efficiently.
- Improved Credit Score: Proper GST and regulatory compliance enhances the business’s
credit profile.
- Legal Protection: Provides legal and regulatory safeguards for businesses,
protecting their rights.
- Ease of Compliance: Simplifies the process of filing tax returns and making online
payments.
- Operational Transparency: Ensures up-to-date business records, fostering
reliability and transparency in operations.
Types of GST Registrations in India
In India, the Goods and Services Tax (GST) is categorized into three main types. Here’s a breakdown of
each:
- Central Goods and Services Tax (CGST): CGST is imposed by the central government on
goods and services supplied within a single state. It applies to transactions conducted within
the confines of one state.
- State Goods and Services Tax (SGST): SGST is levied by the state government on
goods and services provided within its jurisdiction. Similar to CGST, SGST applies to
transactions within a specific state.
- Integrated Goods and Services Tax (IGST): IGST is charged by the central government
on goods and services that are supplied between states or between a state and a Union Territory.
It applies to transactions where goods or services move across state or Union Territory
boundaries.
Eligibility Criteria for New GST Registration
Certain businesses and service providers must obtain GST registration. The eligibility criteria for
mandatory GST registration include:
- Business Enterprises: Any business with an annual turnover exceeding INR 40 Lakhs
must apply for GST registration. In special category states, the threshold is INR 20 Lakhs.
- Service Providers: Service providers with an annual turnover above INR 20 Lakhs are
required to register. For special category states, the threshold is INR 10 Lakhs.
- Exemptions: Businesses or service providers dealing exclusively in GST-exempt goods
and services are not required to meet these thresholds.
- Previously Registered Businesses: Businesses previously registered under other tax
regimes, such as Excise, Service Tax, or VAT, must transition to GST.
- Inter-State Suppliers: Entities engaged in supplying goods across state boundaries
must obtain GST registration.
- Casual Taxable Entities: Individuals or businesses providing taxable supplies
intermittently are required to follow GST guidelines.
- Reverse Charge Mechanism: Businesses obligated to pay tax under the reverse charge
mechanism must also get GST registration.
- Input Service Distributors & Agents: Input service distributors and their agents
must obtain GST registration.
- E-Commerce Platforms: Operators and aggregators providing goods and services
through e-commerce platforms are required to register.
- Non-Resident Taxable Entities: Non-residents involved in taxable activities in
India must obtain GST registration, even if they do not reside in India.
- Agents of Suppliers: Representatives who supply goods and services on behalf of the
principal must register for GST.
- E-Commerce Suppliers: Individuals or businesses delivering goods and services via
e-commerce platforms must register under GST.
- Online Service Providers: Entities providing online information, database access,
or retrieval services to individuals in India from abroad, and not already registered under GST,
must obtain a GST registration certificate.
Documents Required for GST Registration
In order to ensure successful GST registration, several documents are required. The documents required
for GST registration in India are showcased below:
- PAN Card: The applicant's PAN card is required for GST registration.
- Aadhaar Card: The applicant’s Aadhaar card is necessary for identity verification.
- Business Registration Proof: Certificate of incorporation or proof of business
registration is mandatory.
- Promoter/Director Identity Proof: Valid identity proof of the promoters or
directors is needed.
- Promoter/Director Address Proof: Address proof of the promoters or directors is
required.
- Photographs: Recent photographs of the promoters or directors must be provided.
- Place of Business Address Proof: Proof of the address of the place of business is
necessary.
- Bank Account Details: A bank account statement or a cancelled cheque is required.
- Digital Signature: A digital signature is mandatory for online GST registration.
- Authorization Letter: A letter of authorization or a board resolution for the
authorized signatory must be submitted.
GST Registration Procedure
The process of GST registration is now easy and simple. The step-by-step GST registration procedure is as
follows:
- Step 1:
Visit the official GST portal to log in and initiate the registration
process.
- Step 2:
Enter essential details, including the legal business name, PAN, email
ID,
mobile number, district, and state.
- Step 3:
After submitting the details, verify the OTP received on the registered
mobile number and email ID to generate a TRN number, which will be sent via email.
- Step 4:
Use the TRN number to select the "New Registration" tab and continue
with
the registration.
- Step 5:
Provide information related to the promoters/partners, place of
business,
business details, authorized signatory, state, Aadhaar authentication, and verification.
- Step 6:
Click on "Save and Continue" to move forward with the registration.
- Step 7:
Receive the ARN confirmation via SMS after successfully completing the
process.
Penalty for Violating GST Registration Norms
If a taxpayer fails to pay or accidentally underpays their taxes, a penalty of 10% of the outstanding tax
amount is imposed, with a minimum penalty of INR 10,000. It's crucial to make timely tax payments to
avoid non-compliance penalties.
For deliberate tax evasion, businesses or individuals face a penalty equal to 100% of the tax amount
evaded.
The complete GST registration process typically takes around 30 days.
Timeline
GST registration is essential for businesses to ensure legal, regulatory, and operational compliance in
India. The approval process for GST registration usually takes 7 to 10 working days. The entire
registration process, from start to finish, is typically completed within 30 days.
Why Choose SeaRoot
Choosing SeaRoot for your GST registration ensures a seamless and stress-free experience. Our team of
experts navigates the complexities of the registration process, providing personalized support tailored
to your business needs. We focus on efficiency and accuracy, helping you complete the process swiftly
while ensuring full compliance with GST regulations. With SeaRoot, you save time and gain peace of mind
knowing your registration is handled by professionals dedicated to your success.
Frequently Asked Questions
1.Who needs to register for GST?
Any business with an annual turnover exceeding INR 40 Lakhs (or INR 20 Lakhs for special category
states) is required to register for GST. Service providers with a turnover above INR 20 Lakhs
(or INR 10 Lakhs for special category states) must also register.
2.What documents are required for GST registration?
Key documents include the applicant’s PAN card, Aadhaar card, proof of business registration,
identity and address proof of promoters, bank account details, and a digital signature.
3.How long does the GST registration process take?
The approval process typically takes 7 to 10 working days. The entire registration process, from
start to finish, usually takes around 30 days.
4.Can I apply for GST registration online?
Yes, the GST registration process can be completed online through the official GST portal.
5.Is there a penalty for not registering for GST when required
Yes, failure to register for GST when mandated can result in penalties. Non-payment or
underpayment of taxes can lead to a penalty of 10% of the outstanding tax amount, with a minimum
penalty of INR 10,000. Deliberate tax evasion can incur a penalty of 100% of the tax amount
evaded.
6.Can I make changes to my GST registration details after submitting the
application?
Yes, you can make changes to your GST registration details by submitting an amendment application
online through the GST portal. However, certain changes may require approval from the GST
authorities.